Accounting Information Systems 8th Edition by James Hall

Exercise 94

SYSTEM DOCUMENTATION-
PAYROLL
Required
Assuming the payroll system described in Problem 14 uses database files and computer processing procedures, prepare a data flow diagram, an entity relationship diagram, and a systems flowchart.
Problem 14:
SYSTEM DOCUMENTATION-
PAYROLL
The following describes the payroll procedures for a hypothetical company.
Every Thursday, the timekeeping clerk sends employee time cards to the payroll department for processing. Based on the hours worked reflected on the time cards, the employee pay rate and withholding information in the employee file, and the tax rate reference file, the payroll clerk calculates gross pay, withholdings, and net pay for each employee. The clerk then manually prepares paychecks for each employee, files hard copies of the paychecks in the payroll department, and posts the earnings to the hard-copy employee records. Finally, the clerk manually prepares a payroll summary and sends it and the paychecks to the cash disbursements department.
The cash disbursements clerk reconciles the payroll summary with the paychecks and manually records the transaction in the hard-copy cash disbursements journal. The clerk then files the payroll summary and sends the paychecks to the treasurer for signing.
The signed checks are then sent to the paymaster, who distributes them to the employees on Friday morning.
Required
Prepare a data flow diagram and a system flowchart of the payroll procedures previously described.